RRTS acquires Mass.-based CTW Transport

The company announced this week it has acquired all of the outstanding capital stock of CTW Transport, a Peabody, Mass.-based truckload carrier specializing in refrigerated food products.

By ·

Growing through acquisition is nothing new for non asset-based third-party logistics services provider Roadrunner Transportation Systems (RRTS)

The company announced this week it has acquired all of the outstanding capital stock of CTW Transport, a Peabody, Mass.-based truckload carrier specializing in refrigerated food products.

RRTS officials said the purchase price was roughly $7.5 million plus an earnout, and noted that for 2012, CTW expects to generate revenues of approximately $15 million.  They were not available for further comment at press time.

“The acquisition of CTW broadens the service offerings within our Truckload & Logistics business segment and expands our refrigerated capacity and customer base,” said Mark DiBlasi, CEO of Roadrunner, in a statement. “CTW’s former owner will remain in place and is excited about the growth opportunities we collectively envision.”

RRTS added that CTW is complementary to the company’s Truckload & Logistics platform, coupled with the fact that RRTS is looking forward to serving CTW’s long-term customer base and accelerate its growth and geographic expansion.

This transaction marks the eighth acquisition RRTS has made going back to August 2010. In April, it acquired D&E Transport, an asset-light flatbed carrier focused on food and agricultural products, and in February it acquired Capital Transportation Logistics, a transportation services management (TMS) services provider. In September 2011, it acquired Prime Logistics Corporation, a non-asset based provider of logistics and freight consolidation. In February 2011 it acquired Morgan Southern, a privately-held provider of intermodal transportation and related services for roughly $20 million, and in May 2011 it acquired Wichita, Kansas-based truckload services provider Bruenger Trucking Company; and in July 2011 it acquired The James Brooks Company, a provider of intermodal transportation and related services for the ports of Los Angeles/Long Beach and Oakland.

Robert W. Baird & Co. analyst Ben Hartford wrote in a research note that CTW mainly serves customers in the southeast and operates a 30-truck fleet, with the majority operated by independent contractors.

The analyst added that more acquisitions in the future are likely for RRTS, as his firm estimates RRTS has about $65 million in borrowing capacity remaining under its revolving credit facility, which provides further capacity to facilitate acquisitions.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Saddle Creek Resources
image Optimizing Omnichannel Distribution through Outsourcing
The omnichannel business model has fast become the gold standard in today’s marketplace as retailers and ecommerce companies recognize its potential impact.


Latest Whitepaper
Outsourced Transportation Management
All the benefits of owning a fleet without the headache of managing it.
Download Today!
From the August 2017 Logistics Management Magazine Issue
Which carriers, third-party logistics providers, and North American ports have crossed the service excellence finish line ahead of their competitors? Our readers have cast their votes, and now it’s time to introduce this year’s winners of the coveted Quest for Quality Awards.
BMW Takes the Inland Road to Efficiency
Global Logistics: No Shortcuts to Security
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...